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§ 15. Notwithstanding any provision of law to the contrary, members of the collective negotiating unit consisting of troopers in the division of state police established pursuant to article 14 of the civil service law who obtain a recognized degree from an accredited and recognized college or university during the period April 1, 1991 through March 31, 1995 shall receive a lump sum payment of two hundred dollars for such an associate degree, five hundred dollars for such a bachelor's degree, masters or doctoral degree; provided, however, that such payments shall be made from the unexpended and unencumbered funds of the professional development program available for such purposes as of March 31 of the fiscal year during which such degree is obtained. In the event that such funds are insufficient, proportionate payments shall be made, in lieu of the payments specified in this section, subject to the provisions of a collective negotiating agreement between the state and the employee ganization representing such unit entered into pursuant to article 14 of the civil service law.

$ 16. Notwithstanding any provision of law to the contrary, the appropriations contained in this act shall be available to the state for the payment and publication of grievance and arbitration settlements and awards pursuant to article 15 of the collective negotiating agreement between the state and the employee organization representing the collective negotiating unit consisting of troopers of the division of state police established pursuant to article 14 of the civil service law.

§ 17. During the period April 1, 1991 through March 31, 1995 there shall be a committee on health benefits established and administered pursuant to the terms of a collective negotiating agreement between the state and the employee organization representing members of the collective negotiating unit consisting of troopers in the division of state police pursuant to article 14 of the civil service law and within the appropriations available therefor.

$ 18. The salary increases and benefit modifications provided for by this act for members of collective negotiating units in the division of state police established pursuant to article 14 of the civil service law shall not be implemented until the director of employee relations shall have delivered to the director of the budget and the comptroller a certificate that there is in effect with respect to such negotiating unit a collective agreement which provides for such increases and modifications and which is fully executed in writing with the state pursuant to article 14 of the civil service law and which has been ratified pursuant to the ratification procedure of the employee organization certified pursuant to article 14 of the civil service law to represent such collective negotiating unit.

§ 19. Compensation for certain state officers and employees in collective negotiating units. 1. The provisions of this section shall apply to full-time officers and employees in the collective negotiating units designated as the troopers established pursuant to article 14 of the civil service law.

2. Officers and employees to whom the provisions of this section apply who, during the period beginning April 1, 1991, and ending March 31, 1992, completed one year of service in full-time employment status at a basić annual salary rate that was below the job

of their salary grade whose performance during such year of service was rated at least

satisfactory" or its equivalent, shall be entitled to non-recurring lump sum payment in accordance with the terms of the agreements between the state and an employee organization reached pursuant to article 14 of the civil service law. Such payment shall be in an amount equal to the additional salary such officer or employee would have received as

an increment advance beginning on the first day of the payroll period following such officer's or employee's anniversary date, occurring, on or after April 1, 1991, and ending March 31, 1992. Such payment shall be made as soon as practicable after enactment of this act and shall be in addition to and shall not be a part of the employee's basic salary, provided, however, that any amounts payable pursuant to this subdivision shall be included as compensation for retirement purposes. Notwithstanding the foregoing provisions of this subdivision, officers and employees who would have otherwise been eligible to receive such lump sum payment but who separated from service prior to such payment or who are on leave of absence when such payment occurs shall receive such lump sum payment. EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

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§ 20. Use of appropriations. The comptroller is authorized to pay any amounts required during the fiscal year commencing April 1, 1992 by the foregoing provisions of this act for any state department or agency from any appropriations or other funds available to such state department or agency for personal service or for other related employee benefits during such fiscal year. To the extent that such appropriations are insufficient to accomplish the purposes herein set forth, the director of the budget is authorized to allocate to the various departments and agencies, from any appropriations available, the amounts necessary to pay such amounts.

§ 21. Date of entitlement to salary increase. Notwithstanding the provisions of this act or of any other law, the increase of salary, or compensation of any officer or employee provided by this act shall be added to the salary or compensation of suchofficer or employee at the beginning of that payroll period the first day of which is nearest to the effective date of such increase as provided in this act, or at the beginning of the earlier of two payroll periods the first days of which are nearest but equally near to the effective date of such increase as provided in this act; provided, however, that for the purposes of determining the salary of such officer employee upon reclassification, reallocation, appointment, promotion, transfer, demotion, reinstatement or other change of status, such salary increase shall be deemed to be effective on the date thereof as prescribed in this act, and the payment thereof pursuant to this section on a date prior thereto, instead of such effective date, shall not operate to confer any additional salary rights or benefits on such officer or employee. Payment of such

salary increase may be deferred pursuant to section twenty-one of this act.

§ 22. Deferred payment of salary increase. Notwithstanding the provisions of any other section of this act, or of any other law, pending payment pursuant to this act of the basic annual salaries of incumbents of positions subject to this act, such incumbents shall receive, as partial compensation for services rendered, the rate of compensation otherwise payable in their respective positions. An incumbent holding a position subject to this act at any time during the period from April 1, 1992, until the time when basic annual salaries are first paid pursuant to this act for such services in excess of the compensation actually received therefor, shall be entitled to a lump sum payment for the difference between the salary to which such incumbent' is entitled for such service and the compensation actually received therefor. Such lump payment shall be made as soon as practicable.

Š 23. The several amounts as hereinafter set forth, or so much thereof as may be necessary, are hereby appropriated from the fund so designated for use by any state department or agency for the fiscal year beginning April 1, 1992 to supplement appropriations from each respective fund available for personal service, other than personal service and fringe benefits, and to carry out the provisions of this act. No money

shall be available for expenditure from this appropriation until a certificate of approval has been issued by the director of the budget and a copy of such certificate or any amendment thereto has been filed with the state comptroller, the chairman of the senate finance committee and the chairman of the assembly ways and means committee.

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Special Revenue Funds - Other
Miscellaneous Special Revenue Fund - 339
New York State Thruway Income Account

Personal Service

Personal Service

313,100 Overtime

42,900 Clothing allowance

35,700 Productivity gain

6,000 Trooper performance bonus

7,000 Nonpersonal Service Fringe Benefits

141,600 § 24. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 1991.

REPEAL NOTE.-Subparagraph 1 of paragraph a of subdivision 2 of section 215 of the executive law, repealed by section one of this act, provided salary schedules for state employees in the position of trooper and is replaced by salary schedules in new subparagraph 1.

Sections 7 and 10 of chapter 556 of the laws of 1988, repealed by section three of this act, provided additional compensation and additional compensation in recognition of unused sick leave credits respectively, and are replaced by revised provisions provided by sections six and nine of this act.

CHAPTER 501

AN ACT to amend the insurance law and the public health law, in relation

to requiring that individual and small group health insurance be made available on an open enrollment basis; community rating of individual and small group health insurance policies; portability of health insurance coverage and continuation of hospital, surgical or medical expense insurance and making an appropriation therefor

Became a law July 17, 1992, with the approval of the Governor. Passed on

message of necessity pursuant to Article III, section 14 of the Constitution by a majority vote, three-fifths being present.

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Section 209 of the insurance law is amended to read as follows:

$ 209. Special [report] reports. (a) The superintendent of insurance shall, no later than January, thirty-first, nineteen hundred eighty-six, submit to the governor and the legislaturé a report on the operation and results of chapter seven hundred eighty-one of the laws of nineteen hundred eighty-three amending the vehicle and traffic law and the insurance law relating to motor vehicle liability insurance, notices of terminaprocedures

for lack of financial security and exemption for certain vehicles.

(b) The superintendent, in consultation with the commissioner of health, shall appoint an advisory panel for the purpose of developing standardized medical claim form or forms to be utilized by all health care providers an isurers. The panel shall consist of the superintenEXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

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dent, or his or her designee, and two representatives each of commercial insurance companies, health and hospital service corporations subject to the provisions of article forty-three of this chapter, companies which make payments pursuant to

the workers' compensation law, volunteer firefighters' benefit law, volunteer ambulance workers' benefit law and the comprehensive motor vehicle insurance reparations act, health maintenance organizations, as defined in section forty-four hundred one of the public health law, hospitalş, defined in section twenty-eight hundred of the public health law, purchasers of insurance, and the medical society of New York state. The panel, whose members shall serye without compensation, shall meet periodically at the discretion of the superintendent. On or before July first, nineteen hundred ninety-three, the panel shall make a report on its findings and recommendations to the governor, the speaker of the assembly, the temporary president of the senate, the chairpersons of the assembly insurance committee and the assembly health committee, and the chairpersons of the senate insurance committee and the senate health committee.

§ 2. Subsection (a) of section 1109 of the insurance law, as amended by chapter 417 of the laws of 1990, is amended to read as follows:

(a) * An organization complying with the provisions of article fortyfour of the public health law may operate without being licensed under this chapter and without being subject to any provisions of this chapter, except: (1) to the extent that such organization must comply with the provisions of this chapter by virtue of such article, and (2) the provisions of sections three hundred thirteen, three hundred, thirty-two [and], one thousand three hundred seven, four thousand three hundred seventeen and four thousand three hundred eighteen of this chapter.

§ 3. Paragraphs 1, 2 3 and 4 of subsection (m) of section 3221 of the insurance law, as added by chapter 369 of the laws of 1985, are amended to read as follows:

(1) Continuation shall not be available for: (A) any person who is covered, becomes covered or could be covered

by title XVIII of the United States Social Security Act (Medicare) as amended or superseded; or (B) an employee, member or dependent who is covered, becomes covered or could become covered as an employee, member or dependent by any other insured or uninsured arrangement which provides hospital, surgical or medical coverage for individuals in a group which does not contain any exclusion or limitation with respect to any pre-existing condition

of such employee, member or dependent, except the group insurance policy conversion option of this section shall not be considered as such an arrangement under which employee, member or dependent could become covered.

(2) (A) An employee or member who wishes continuation of coverage must request such continuation in writing, within the [twenty] sixty day period following the later of: [(A)] (i) the date of such termination; or [(B)] (ii) the date the employee is given notice of the right of continuation by either his employer or the group policyholder. [In no event, however, may the employee or member elect continuation more than thirty-one days after the date of such termination. ]

(B) An employee or member who wishes continuation of coverage under subparagraph (D) of paragraph four of this subsection must give notice to the employer or group policyholder within sixty days of the determination under title II or title XVI of the United States Social Security Act that such employee or member was disabled at the time of termination of employment or membership.

(3) An employee or member electing continuation must pay to the group policyholder or his employer, but not more frequently than on a monthly basis in advance, the amount of the required premium payment, but not more than one hundred two percent of the group rate for the benefits being continued under the group policy on the due date of each payment. The employee's or member's written election of continuation, together with the first premium payment required to establish premium payment on a monthly basis in advance, must be given to the policyholder ployer within [thirty-one] șixty days of the date the employee's or member's benefits would otherwise terminate.

(4) Subject to paragraph one of this subsection, continuation of benefits under the group policy for any person shall terminate at the first to occur of the following:

(A) The date [six] eighteen months after the date the employee's or member's benefits under the policy would otherwise have terminated because of termination of employment or membership; or

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(B) The end of the period for which premium payments were made, if the employee or member fails to make timely payment of required premium payment; or

(C) In the case of an eligible dependent of an employee or member, the date thirty-six months after the date such person's benefits under the policy would otherwise have terminated by reason of:

(i) the death of the employee or member;

(ii) the divorce or legal separation of the employee or member from his or her spouse;

(iii) the employee or member becoming entitled to benefits under title XVIII of the United States Social Security Act (Medicare); or

(iv) a dependent child ceasing to be a dependent child under the generally applicable requirements of the policy; or

(D) In the case of an employee or meinber who is determined, under ticle II or title XVI of the Social Security Act, to have been disabled at the time of termination of employment or membership, the date twentynine months after the date the employee's or member's benefits under the policy would otherwise have terminated because of termination of employment or membership; provided, however, that if such employee or member is longer disabled, the benefits provided in this subparagraph shall terminate the later of (i) the date provided by subparagraph (A) of this paragraph, or (ii) the month that begins more than thirty-one days after the date of the final determination under title II title XVI of the United States Social Security Act that the employee or member is no longer disabled; or

(E) The date on which the group policy is terminated or, in the case of an employee, the date his employer terminates participation under the group policy. However, if this clause applies and the coverage ceasing by reason of such termination is replaced by similar coverage under another group policy, the following shall apply:

(i). The employee or member shall have the right to become covered under that other group policy, for the balance of the period that he would have remained covered under the prior group policy in accordance with this subparagraph_had a termination described in this subparagraph [(C) of this paragraph] not occurred, and

(ii) The minimum level of benefits to be provided by the other group policy shall be the applicable level of benefits

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the prior group policy reduced by any benefits payable under that prior group policy, and

(iii) The prior group policy shall continue to provide benefits to the extent of its accrued liabilities and extension of benefits if the replacement had not occurred.

§ 4. The insurance law is amended by adding a new section 3231 to read as follows:

§ 3231. Rating of individual and small group health insurance policies; approval of superintendent. (a) No individual health insurance policy and no group health insurance policy covering between three and fifty employees or members of the group exclusive of spouses and depen; dent's, hereinafter referred to a small group, providing hospital and/or medical benefits, including medicare supplemental insurance, shall be issued in this state unless such policy is community rated and notwithstanding any other provisions of law, the underwriting of such policy involves no more than the imposition of a pre-existing condition limitation as permitted by this article. Any individual, and dependents of such individual, and any small group, including all employees or group members and dependents of employees or members, applying for individual health insurance coverage, including medicare supplemental coverage, or small group health insurance coverage, including medicare supplemental insurance, must be accepted at all times throughout the year for any hospital and/or medical coverage offered by the insurer to individuals or small groups in this state. Once accepted for coverage, an individual or small group cannot be terminated by the insurer due to claims

experience. Group hospital and/or medical coverage, including Dedicare supplemental insurance, obtained through an out-of-state trust covering a group of fifty or fewer employees or participating persons who are residents of this state must be community rated regardless of the situs of delivery of the policy. Notwithstanding any other provisions of law, the underwriting of such policy may involve no

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